The second largest U.S. oil company said second-quarter net income fell to $7.2 billion, or $3.66 per share, from $7.7 billion, or $3.85 per share, a year before.

Revenue was $62.6billion, down from $68.6 billion a year ago.

Analysts had expected the company to report earnings excluding items of $3.24 per share on revenue of $68.56 billion, according to a consensus estimate from Thomson Reuters.

Shares of Chevron fell in pre-market trading immediately after the announcement. (Get the latest quote for Chevron here.)

The company's upstream business — oil and gas production — posted an 18 percent profit drop to $5.6 billion, while its downstream refining business saw profit jump 80 percent to $1.88 billion.

Chevron said earlier this month that industry benchmark margins on the Gulf Coast rose more than $4 per barrel to $24.89, while West Coast margins improved to $21.32 per barrel, their highest three-month average in four years.

Chevron's largest refinery is in Mississippi, with 330,000 barrels per day of capacity, while its two California plants can together refine 518,000 bpd.

Profits at larger rival Exxon Mobil fell short of expectations on Thursday as oil and gas output sagged and its chemical unit faced weak margins.